MAKING

THE CASE
FOR CONNECTED PRODUCT
MANAGEMENT
Business-ready IoT
platform availability
means you no
longer have to
approach the IoT
as a DIY project.

SPONSORED BY PRODUCED BY
 THE IoT
BY THE NUMBERS

RAMPING UP
6.4 billion
The number of connected
40%
of the top 100 discrete
things that will be in manufacturers will rely
use this year, up 30% on connected products to

IOT SOLUTIONS
from 2015, according to provide products as
Gartner, Inc. a service by 2018,
according to IDC.

20.8-50.1
billion
The high and low
estimates of connected
devices expected by 2020
by various research firms.
IF NUMBERS TELL A STORY, the Internet of Things (IoT) is well past the
hype stage and well on the way to transforming product development
strategies and existing business models. According to Gartner, 6.4 billion
$546 billion,
23%
of enterprises were using
the IoT in the first quarter
of 2016, with another
29% planning to do
so within the next 12
months, according to
Forrester Research.

connected things will be in use worldwide this year, up 30% from 2015 $868 billion
The endpoint hardware
and driving aggressively toward 20.8 billion by 2020. Just this year alone, spending this year by
consumers and enterprise,
5.5 million new things will get connected every day. respectively, driven
by the IoT, according to
1.3 trillion
The amount of IoT
spending worldwide by
2019, as predicted by
research firm IDC.

I
n anticipation, organizations are doubling down domain expertise that may be lacking in-house, from Gartner, Inc.
on the design of connected products, hoping to sweeping connectivity skills to in-depth security knowl-
capitalize on new business models that will unleash edge and a core competency with Big Data management $3.9 trillion
additional revenue streams. By leveraging IoT data,
connected products can create new business value,
and analytics. Among early adopters, chief concerns
include the complexity of solution implementation (51%),
37%
of enterprises plan to
$11.1 trillion
The potential economic
letting companies branch out into areas like predictive security (50.2%), complexity of integration with existing
go live with machine-to- impact of the IoT in
maintenance services, for example, or ramping up sales systems and software (41.2%), among other factors,
machine projects in 2017, 2025, according to
by having insight into what products customers have and according to the Machina study. Even if a company has
according to Vodafone. McKinsey Global
where they are in the lifecycle. In fact, research shows that the necessary expertise, trying to cover all these bases in
Institute.
the most successful early IoT adopters are pursuing a vision DIY mode limits growth and innovation while putting an
built around growth opportunities, not cost reduction.
Under pressure to get onboard with IoT, many engineer-
ing organizations have embraced a do-it-yourself (DIY)
organizations critical IoT product roadmap at risk.
Imagine if your company decided today that it needed
a product lifecycle management or customer relationship
81%
81% of companies with an 43%
strategy, cobbling together disparate IoT capabilities and management platform. While it would be possible to build IoT project underway have of very large organizations
doing their own custom development. According to Lessons something from scratch, it wouldnt make sense to invest tried to take the lead role (>$500 million in
Learned from Early Adopters of the IoT: A Global Study of the necessary time and resources when there are already on the project themselves, revenues) have initiated
Connected Businesses, by Machina Research, 81% of com- powerful and proven solutions available. Its much the same while 59% of those waiting some form of IoT project,
panies with IoT projects underway have taken the lead role with the IoT. New Connected Product Management (CPM) to adopt an IoT solution according to Machina
on projects, but their feedback shows that this design strat- platforms, available as Software-as-a-Service, are planning to work with Research.
egy falls apart as soon as the effort gains scale. provide an end-to-end IoT solution that includes IoT provider partners,
While engineers first response is to roll up their everything needed to launch and run a live IoT according to Machina
sleeves and dive into IoT developmentmuch like they connected product business. Offerings like Research.
weathered through Excel-based data management Xivelys Connected Product Application Suite
or open source cluster deploymentsthis hands-on provide a real-time view of connected products
approach is far riskier in the complex world of IoT. IoT in the field, including product details, trend data,
design and development requires new and complex product health, connectivity status, device loca-

2 MAKING THE CASE for Connected Product Management MAKING THE CASE for Connected Product Management 3
tion, firmware versions and events associated with the
products. Dashboards let all the different decision makers
visualize product management, development and services,
which fosters better decision making and leads to a better
customer experience.
While the can-do DIY spirit is excellent to jumpstart IoT
pilots, its critical to have the right partner and CPM platform
to launch the offering at scale. With the demands of con-
nectivity, security and data management off their plate,
engineers are free to focus on what they do best: Designing
innovative products, not building out core IoT infrastructure.
CONNECTED PRODUCT
MANAGEMENT: A PRIMER
So youre ready to take on IoT. Now what? Along
with all the promise and revenue potential of
this next wave of business transformation comes
the reality of the work involved to securely manage con-
nected products and organize and leverage the contex-
tual data in a way that gleans critical business insights.
A new category of software is emerging to help orga-
nizations with this journey. Called Connected Product
Management (CPM), the solutions are designed to help
companies readily tap into the insights created by con-
nected products while enabling them to more easily
manage the complexities of an IoT-connected product
model. Critical capabilities of a CPM platform include:
A secure, low-latency connectivity and messaging
foundation primed to handle millions of messages at sub-
second speeds even at scale across millions of devices.
Device management capabilities, including the ability
to provision, configure, monitor, administer and handle
firmware and software updates as part of a connected
product fleet management dashboard.
Device and end-user identity management
functionality to secure devices and protect connected
product data in transit and within other applications.
An end-to-end security infrastructure that protects
both the device and end user data, in transfer and in the
cloud, including the critical stages of managing access,
provisioning and decommissioning a product.
Remote device support for autonomously
communicating issues and providing critical context in
support of automated or manual troubleshooting.
Integration with enterprise systems so connected
product data can be shared across primary enterprise
systems like CRM.
4 MAKING THE CASE for Connected Product Management
TOP 10 IOT STUMBLING BLOCKS
P
lotting product development
strategy in the still early days of IoT
is a lot like being an explorerthere
are plenty of rich and untapped
opportunities, but the trek winds
through dangerous obstacles along the way.
One of more serious stumbling blocks to
IoT success is the temptation for pioneers to
go it alone as an alternative to navigating the
nascent and confusing ecosystem of vendors.
Faced with a barrage of incomplete and diffi-
cult-to-integrate IoT solutions, early adopters
may feel they have a better shot at moving forward
with a do-it-yourself (DIY) plan rather than risk losing
momentum waiting for a clear IoT roadmap to emerge.
Yet building an IoT solution from scratch comes with
a multitude of challenges, from connecting the physical
products to managing the data, integrating with existing
business systems and ensuring the highest levels of
security. The danger for companies setting out on a DIY
IoT course is devoting too much energy to technical
challenges and not enough time to business strategy,
product design and ultimately, competitive advantage.
With that in mind, here are the top 10 reasons why the
short-term gains of a DIY IoT approach may actually be a
long-term misfire:
1 Its all about the business. IoT is a classic
example of organizations needing to take
a step back and determine whether there is a
strong business case for pursuing IoT before they
get on board with implementation. Championing
IoT simply because its the latest technology may
be enough for engineers, but it means nothing
to customers or the companys financials unless
there is a smart business strategy to back it up.
Resources dont come cheap. IoT commands a
2 great deal of expertise in areas where most
companies are lacking. By some estimates, it can
take over 150 months of manpower and an invest-
ment in 11 unique long-term roles to sufficiently
develop and support a full IoT-connected product
development stack. Most companies evaluating
the IoT space arent software development or con-
nectivity experts and would be better served
focusing engineering resources on core com-
petencies.
3 Growing pains come with scale. Even if the
initial IoT implementation goes off without
a hitch, scaling the system to accommodate a
larger universe of things, additional features and
product lines typically brings new, unanticipated
challenges. Its critical to make sure your system
design is future-proofed from the start, and build-
ing for scale adds complexity to an already com-
plex project.
4 Security is a top concern. There are multiple
vulnerability points in an IoT system, and
many engineering organizations dont have the
internal expertise to address them sufficiently.
Rather than staffing up a dedicated security orga-
nization, companies should consider aligning with
external partners with proven, connected product
security expertise.
Identity management challenges. Related to
5 security, this is a critical step to ensuring
users can control their own IoT devices and there
are limitations on who can make changes or initi-
ate updates. Again, its an area where many engi-
neering organizations lack sufficient competency.
Data deluge. Connected products spin off
6 a massive amount of data, which requires
competency in data management practices and
new Big Data technologies. Not only that, but the
IoT data needs to be organized and integrated into
existing business systems. For engineering organi-
zations light on data management manpower, this
can be a problem, not to mention, a huge impedi-
ment to the success of any connected business.
Long-term maintenance. If you build an IoT
7
system on your own, youre probably going
to have to support it on your own, which requires
an additional investment in manpower. A system
built in-house will require frequent updates over
the course of its lifetime, which can quickly eat up
entire budgets and consume already stretched
engineering resources.
Time-to-revenue delays. It takes time and
8 effort to build these systems from scratch,
and every hour spent on engineering prolongs
development and increases the time-to-market
cycle. Companies trying to ride the IoT wave need
to get products into the hands of customers as
soon as possible to stay abreast of competition
and maximize financial gain.
9 On-going interoperability requirements.
Maintaining full control of the IoT technology
stack also means being responsible for on-going
integration requests and keeping up with continu-
ously changing standards. As the connected prod-
uct business matures, this can be a lot of work that
could be handled more efficiently by a third party.
Service distractions. The work involved in
10 managing in-house solutions can distract
from one of the more important advantages of IoT:
Gaining a picture of product usage and customer
requirements that can be leveraged for optimized,
proactive service. If companies are spending all
their time troubleshooting their own IoT hardware
and software, they have less time to devote to
customers problems or growing their IoT-enabled
business.
MAKING THE CASE for Connected Product Management 5
 What are the top business benefits your Regarding your specific Internet-of-
company could achieve using a software Things (IoT) initiatives, how important

MAXIMIZE IOT
platform to connect, secure, manage, are the following IoT solution
analyze, and engage customers through components to enabling your firms
your connected devices? connected device initiatives?*

MANAGEMENT
How challenging is it for your firm to
deliver on each of these Internet-of-
Things solution components?**
Enhance customer
service and support
capabilities 46%
Improve customer
Why Connected Product Management? 44% Device enablement 75%
experience 66%
libraries

Application 76%
IOT PRODUCT DESIGN POSES ITS OWN SET OF CHALLENGES, but managing a growing ecosystem of connected Expand revenue SDKs 56%
productsincluding robust data flows, secure connections and terabytes of valuable usage dataelevates opportunities from new
products and services 42% Message broker that allows
complexity to a whole other level, especially if companies are relying on a patchwork of point solutions and connected products to 81%
communicate with users 69%
homegrown systems. Enable competitive
differentiation by offering
37% Ability to define and manage users,

W
IoT-enabled connected 83%
employees, customers
hile the can-do spirit of DIY development management capabilities made accessible through products and partners 62%
may be great for the initial go-around, its dashboards, which transform unwieldy data into insights
no longer practical when the pilot project that allow executives to see the big picture. Enhance analytics and Ability to set up roles, permission and
81%
morphs into a new service-oriented business data insight available on
connected products and 37% authentication across all connected
product users 61%
model. Rather than risk the delays and dead
ends inherent in early do-it-yourself projects, a Connected
Product Management platform like LogMeIns Xively can
2 Connectivity at Scale. With millions of messages firing
off at sub-second speeds, a low-latency connectivity
and messaging foundation is critical to expanding IoT
services
Device provisioning and 76%
lifecycle management for 67%
help manufacturers take IoT initiatives to the next level, efforts beyond limited pilots. The Xively CPM platform The top IoT platform benefits focus on improved discovery of durable data
maximizing their IoT-connected business model. Via delivers secure, high-scale and high-speed connectivity customer experience.
capabilities like the proprietary Blueprint technology, which that can keep up with growing demand. Operational and investigative 82%
Source: Connect and Protect: The Importance Of Security And Identity Access analytics to transform data into 64%
creates digital templates of physical products and maps the Management For Connected Devices, A Forrester Consulting Thought Leadership Paper business and customer insights
data they product, Xively CPM helps companies prepare for
3 Remote Product Support. Part of the promise of Commissioned By Xively By LogMeIn. Base: 100 discrete manufacturers of durable
goods that manufacture connected products for consumers and/or businesses in the
scale from the onset of their IoT design. connected products is using the data to deliver Department-specific tools to enable
US and the UK. 86%
proactive and preventative support. The platforms remote new ways to engage customers &
provide differentiation 63%
Four areas where Xively CPM maximizes device support lets connected devices autonomously
IoT success: communicate issues back to OEMs, including
Data integration with
additional context that can aid in automated or manual A Forrester Research study found manufacturers partners existing business 83%
72%
1 Visualization of Product Data. Data spawn from troubleshooting regardless of where the device is located. of connected devices concerned with a wide range of enablement solutions
connected products can be overwhelming, especially security threats, from external and internal hackers to

as the number of connected products grows. By 2020,
experts say there will be three product conversations for
every one customer conversation, leaving companies
with a data deluge that needs to be structured and
made actionable. The Xively CPM platform simplifies
device management, helping to provision, configure,
monitor and administer firmware and software updates.
The platform also delivers connected product fleet
4
Security. Perhaps the greatest concern surrounding IoT
is delivering adequate security for the devices and data
being collected and transmitted. Already there is concern
about the potential security flaws of IoT-enabled productsa
60 Minutes segment demonstrated how easy it would
be to hijack a connected vehicle, while cybersecurity
researchers at the University of Michigan recently launched
an experimental hack of a smart home automation system.
viruses, network worms and other malware. In particular,
67% of respondents were critically concerned about the
availability of identity and access management (IAM)
capabilities to protect and control access to device data.
IoT CPM platforms like Xively deliver end-to-end security
functions and IAM capabilities to secure devices and
connected product data both in transfer and within other
applications.
EXTREMELY IMPORTANT EXTREMELY CHALLENGING
OR IMPORTANT OR CHALLENGING TO DELIVER
IoT software platform functions are important
but challenging for manufacturing firms to implement.
* Extremely important or moderately important; ** extremely challenging or moderately challenging
Source: Connect and Protect: The Importance Of Security And Identity Access Management For Connected
Devices, A Forrester Consulting Thought Leadership Paper Commissioned By Xively By LogMeIn. Base:
100 discrete manufacturers of durable goods that manufacture connected products for consumers and/or
businesses in the US and the UK.

6 MAKING THE CASE for Professional Engineering Workstations MAKING THE CASE for Connected Product Management 7
 GET ON THE
FAST TRACK
WHEN SETTING OFF INTO THE UNKNOWN, its wise to
follow in the footsteps of someone who has already
been there. Whether youve taken the first steps on
the road toward connected product management
or are just preparing for the journey, you dont have
to go it alone. See how companies from diverse
industries have connected their products.
8 MAKING THE CASE for Connected Product Management
E
ven known design disciplines like systems
engineering dont cover all the complexities
involved in Connected Product Management.
Beyond the physical design of the connected
product, there is uncharted territory in areas
like security, Big Data management and oversight of the
connected product out in the field. Thankfully, there are
solutions already available so engineering teams dont have
to spend their valuable time recreating the wheel that drives
the IoT. Instead, they can choose an expert Connected
Product Management provider to partner with so they can
focus on developing the best connected products.
The right IoT partner can guide you toward the best
Connected Product Management workflow for your
specific needs.
That was certainly the case at Lutron Electronics, a
50-year-plus fixture in the lighting solution business, with
a vision to use IoT to adapt its large-scale connected
home offerings to the mass market. Imagining a product
that could be set up in minutes and easily controlled
through a smart phone app, Lutron engineers had exper-
tise in connected products, but not at the scale required
to release a mass market product in a timely fashion.
In addition to remote connectivity expertise, Lutron also
needed assistance in the data management aspect of
IoT so it could analyze patterns in the usage data col-
lected to better serve customers.
By leveraging Xivelys IoT Platform and LogMeIns
Professional Services group, Lutron went from concept to
field-ready product in just four months. [Xively] played
a big role in accelerating our time-to-market, says Matt
Swatsky, product manager for Lutrons Caseta Wireless
program. They made it possible to develop faster and at
a lower cost so we could pass those savings to consumer
and quickly go to market with a compelling offering.
Simplicity and scalability
Freight Farms, a new agriculture technology business,
tabled the idea of a DIY approach when it experienced
the burden of maintaining and scaling its own IoT solu-
tion with limited internal resources. The companys flag-
ship product is the Leafy Green Machine, a hydroponic
growing facility built inside a shipping container, which
leverages IoT and the Farmhand Connect app to give
farmers the ability to do real-time monitoring and control
of key aspects of the environment, including air, water,
nutrients, and plant growth.
Freight Farms went in search of an IoT partner and
platform to advance its connected farming environment
as demand grew. The company looked for a solu-
tion that was simple to set up, highly
responsive, and easy to scale.
DISCOVERING THE
POTENTIAL OF IoT
Spearheading an IoT project, even a pilot
product, can be overwhelming. To help
technical and business leaders at product companies
gain alignment of IoT goals, Xively offers the
Discovery Consulting package, which includes the
following:
A one-day facilitated workshop
Prioritized Discovery matrix to identify IoT
customers and users; KPIs and measurement tools;
potential features; and a unified set of phased IoT
initiatives
Component architecture
Phased project roadmap
30-day trial of the Xively CPM starter package
Xively CPM covered the entire connectivity stack and
was deployment ready, particularly at scale. Xivelys
dashboard and analytics capabilities also helped cus-
tomers gain insights into the current state of their farms
while helping Freight Farms design a better overall user
experience, according to Kyle Seaman, director of Farm
Technology at the company.
Problem-solving infrastructure
At SATO, a global provider of automatic identification
solutions, a CPM platform approach was essential to its
plan to release the first IoT label printer. Working with
Xively CPM platform and professional services team,
MAKING THE CASE for Connected Product Management 9
5 STEPS TO A SUCCESSFUL IOT JOURNEY
IoT development can sometimes seem overwhelming. These five steps will simplify CLOSING
ARGUMENTS
complexity and make the path less rocky:
Identify your core environment, life cycle and related a new service process, and/or
1 business value. applications). communicating with customers in
new ways.
New value can be created by adding
Manage your
connected features that appeal to
3 connected devices. Replicate your Leverage an end-to-end Connected Product Management platform
customers, improving services, or
leveraging data for upsell/cross- Make the data actionable through
5 process.
sell opportunities based on how a data analytics plan. By building your connected product

I
customers are using the product. solution using a scalable and secure
platform like Xively, you can ensure oT product design covers a lot of groundmuch Like an iceberg, IoT product requirements get larger
Engage products of it new territory for traditional design engineers. and more difficult to navigate the deeper you go.
2 Connect your 4 and customers in future IoT products and services can
be quickly updated, extended and You need to investigate the best sensors to Its difficult enough to merge mechanical, electronic
product and its data. new ways. specify or design so that the products you design and software requirements into a viable connected
deployed.
Use a digital product template like Leverage automation to create are collecting the right information. You have product, let alone account for the data analysis,
Xively CPMs Blueprint, which maps new business value across key to understand different communication protocols so scalability, customer service and security back-end
all the important product data enterprise systems. This step could For more details on the 5 steps, products can connect to one another and the Internet. required to succeed with the IoT. By leveraging an
in order to give it context (users, involve building an app, deploying check out this white paper. You have to take into account power and reliability end-to-end Connected Product Management platform
requirements that can be affected by everything from like LogMeIns Xively, manufacturers can leave IoT
electromagnetic interference to overheating to vibration. complexity to the experts and focus on delivering the
You also have to ensure the products youre designing most innovative product designs and services that will
are capable of being manufactured affordably. And exceed customer expectations.
thats just at the edge of the IoT.
SATO launched the CL4/6NX-J IoT label printer service, is about new ways to serve the modern connected
which delivers a cloud-based maintenance solution customers, says Gary Krause, senior director of
with virtual engineers available around the clock to marketing at SATO America.
deliver always-on customer service that eliminates costly To follow in the footsteps of companies like Lutron,
downtime. Freight Farms and SATO, engineers need to champion
a Connected Platform Management approach vs. a DIY MORE INFORMATION
For more information on how Xively can help,
approach to the IoT. Design engineering teams play
WE SHARE THE VISION THAT BEING an important role in guiding the creation of connected please make use of the following resources:

A CONNECTED BUSINESS IS ABOUT products, but they dont have to take on the burden Xively by LogMeIn Connect with Xively
alone. The can-do spirit of DIYers is commendable, but
NEW WAYS TO SERVE THE MODERN its not practical when it comes to Connected Product
xively.com
Facebook
CONNECTED CUSTOMERS. Management, which represents a huge business Case Studies facebook.com/Xively
-- GARY KRAUSE, senior director of marketing at SATO America opportunity and requires cross-departmental buy-in. xively.com/customers/
By turning to a third-party for help, design Twitter
Blog twitter.com/XivelyIOT
engineering teams can avoid common IoT setbacks
blog.xively.com
Xivelys team helped SATO build both customer-facing and focus on creating innovative products and YouTube
and internal apps that provide each with the ability to services. Engineering teams can find allies youtube.com/Xively
remotely monitor and control the printers, integrating in the IT department, who will welcome the
usage data into Salesforce for automated triggering of technology infrastructure expertise needed for IoT LinkedIn
issues before customers become aware. implementation. Forward-thinking executives who linkedin.com/company/xively
Having a partner to jumpstart the IoT label printer understand that building connectivity into products
service positioned SATO to grow a new add-on business is just the first step toward unlocking the true value
that benefits customers and the company alike. We of the IoT should also be brought onboard as IoT
share the vision that being a connected business champions early.

10 MAKING THE CASE for Connected Product Management MAKING THE CASE for Connected Product Management 11